Supply of mid-priced homes low

Wednesday

Jun 11, 2014 at 8:18 AMJun 11, 2014 at 8:18 AM

May sales up 2.7% from May 2013 By Tim LandisBusiness Editor

The spring housing rebound has created a shortage in the mid-range of local homes between $80,000 and $170,000, Capital Area Association of Realtors president Steve Myers said following release of May sales figures Tuesday.

Sales continued to rebound from the harsh winter, with the 376 homes sold last month up 2.7 percent from May 2013.

The increase, said Myers, brought with it a drop in the inventory on the market, especially in the “sweet spot” of mid-priced homes.

“There are certain prices where we’re extremely short,” said Myers, who added that he has advised local Realtors to canvass their neighborhood for potential sellers.

He said the $80,000-to-$150,000 range is particularly appealing to first-time buyers or existing homeowners looking to downsize. Agents also report multiple offers in that price range, Myers said.

“I tell them it may be time to do some farming,” said Myers. “If you see a person out in front in their flower garden or pushing a lawnmower, you might want to give them your card and ask if they’ve ever thought about selling.”

The inventory of 1,476 homes on the local market at the end of May was a little less than a five-month supply at the current sales pace. Myers said a six-month supply is considered a balanced market between demand and supply.

Falling inventory has not yet resulted in higher prices, according to Tuesday’s report. The median sale price of $112,800 last month was down 1.9 percent from May 2013. The median of $105,600 for January through May was down 2.2 percent from the same period last year.

Myers said that could change if the shortage of homes in the most popular price range persists.

Despite improved April and May numbers, local sales have yet to recover from the cold and snow of January and February. Year-to-date sales of 1,296 homes remained 4 percent behind the January-through-May total in 2013.

Myers said he expects 2014 sales to pass 2013 when June totals are released next month.

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